New thresholds now apply for supply, services and works contracts from 1st January 2014. Contracting authorities who are procuring contracts over these values will be required to follow the procurement rules for tendering and awarding public contracts. This week's blog will examine where these new threshold changes apply.

New thresholds now apply for supply, services and works contracts from 1st January 2014. Contracting authorities who are procuring contracts over these values will be required to follow the procurement rules for tendering and awarding public contracts.

Due to the increased strength of the Pound against the Euro, although the threshold values in Euros have risen slightly, the equivalent value in Pounds has actually dropped.

The table below sets out the current thresholds and the new thresholds which now apply:

Current thresholds

Revised Threshold

Supply and services contracts and design contests (awarded by central government authorities listed in Annex IV and covered by the Government Procurement Agreement)

EUR 130,000
(£113,057)

EUR 134,000
(£111,676)

Supply and services contracts and design contests (awarded by other contracting authorities) and subsidised services contracts

EUR 200,000
(£173,934)

EUR 207,000
(£172,514)

Works contracts, subsidised works contracts and works concession contracts

EUR 5,000,000
(£4,348,350)

EUR 5,186,000
(£4,322,012)

The change in threshold values is the first step in a year of change for EU procurement rules. The EU Parliament has now approved the latest draft Directive on Public Contracts. The drafts still need to be formally approved by Council of Ministers and then signed by European Parliament and the Presidency of the Council but should be published in the Official Journal in March. The Cabinet Office has plans to implement it through a new set of Regulations in the UK as soon as possible and within the required 24 months.